We've had some hot market activity on smoke recently with some major volatility. We've just closed our 4th daily candle since my last analysis. At the time I had said we could see a bounce off that hammer candle, and we did, only to find new lows, ultimately around .456 bts/smoke. Price erupted today reaching a high of .95 bts/smoke, twice our low.
We're seeing a nice pop to volume over the past few days with a few thousand smoke being traded. It has broken us out of a long lull in trading activity where we saw days with no trading or only a few hundred smoke changing hands. Trading volume and liquidity are important for the growth of a market.
The last time we took a look a the order books, they were very thin, on both sides really. We're seeing more orders hit the books, and more so on the buy side. This is really positive news for our maturing market. The last few days have seen more limit buys added to the books, as well as a lot of market buys chewing into the sell side of the books. This is positive and bullish long term.
The sell side of the order books are still thin so another move up is possible here, but we may see some consolidation instead. There are definitely more players stepping into the smoke trading market. We are still below 50% of the all time high at this price, if we break up above 1.0, I would reassess the situation.
This article is not to serve as financial advice